Housing market

[towelsandsheets]

So housing costs are mad - houses prices and rent have risen in value disproportionately to income over the last 50 years making it really difficult all and especially today for young families

But then these families are being hit by nursery costs- but isn't it the case that nursery costs are dominated by the housing / building cost? Which can ( according to the wonders of the internet) be TEN times the staffing costs

And at the other end - this will also be affecting care home costs - and so the council tax bill which may rise 25% in sone cases this year

We are being hit 3 or 4 times over by the failing of the housing market to serve our needs - some are benefitting ( landlords in the long run ; people who get big inheritance)

I ( simplistically as I am not an economist) wonder if more council homes - build council homes not private homes - would help reset this highly flawed market that is really hurting everyone

Have I made a mistake in my understanding? Any better suggestions ?

You are bang on op, everything is ducked because of government mismanagement of the housing market☹️🤬

Cheap basic housing is the best thing for working people, housing is not an investment, it is somewhere to live, the problem with unwinding the property bubble though is that a lot of powerful vested interests in government, banks, developers etc. will resist the much needed price re-set, why do we think government were so keen on all the Help To Borrow schemes? They won"t be able to resist the bond market though, but AB seems to be backtracking on his previous statements about "not being in hock to the bond market" etc.?

I would think more social housing would help.

We have stretched ourselves to our absolute limit to buy a house which was valued at 6x it's original sale price. So the previous owners who owned it from new and are downsizing have walked away with over 600k in equity to retire on. We will never pay off this mortgage unless we can sustain earnng our current salaries beyond retirement age....which is unlikely. I am concerned if anything is done to correct the market we will be stuffed and am banking on being able to sell it for at least it's current value in 10 years time. Not inherited a thing, no inheritance coming my way, work in the public sector btw.

KeepPumping
Reported to MNHQ as this is the 3rd zombie thread you've resurrected today about housing that I've found (so far)

Doesn"t sound llike a great decision TBH, the best thing people buying now can do is to get the asking price down as low as possible, that gives them some future protection at least.

All council housing rent should be ring fenced and reinvested into building more council home. That’s what I’d do.

Developers are already struggling to sell though, building even more homes makes a number of big developers bust, too much vested interest for that, unless AB really doesn"t care?

If the developers housing isn’t selling then they need to lower the prices.

Yes, but they don"t like to do this as it lowers the price of everything, hence all the silly "incentives" that some people fall for? The main owners/shareholders usually extract what they can financially and then let the business pop rather than drop prices and hence profits? They won"t be missed, like with EA"s (also going bust at a steady clip) there are too many of them and there are already plenty of houses.